Research Report · CoinTracker × Coinbase

2026 Crypto
Tax Readiness
Report

A survey of 3,000 U.S. crypto users reveals a population that intends to comply with tax law — but faces profound confusion about cost basis, taxable events, and evolving IRS regulations.

April 2026 · Survey: Sept–Oct 2025
74%

of crypto users are aware their crypto activity is taxable

61%

were unaware of new 2025 tax rules including Form 1099-DA

8%

currently use crypto-specific tax reconciliation solutions

30%

say that they would be comfortable with using AI for their entire tax process

01 →

Profile of the crypto user:
compliant and eager to learn

Today's crypto user is a mainstream financial participant. 83% hold investments outside of crypto — stocks, bonds, and real estate. They are not tax avoiders. The data consistently shows high intent to comply, with 65% having previously reported crypto activity on their taxes, and 15% having never needed to report as they have not yet had any taxable activity (e.g., buy and hold).

76%

invest in traditional stocks, showing crypto as part of a diversified portfolio — not a fringe activity

74%

of crypto users know their activity is taxable; 16% are still unsure, and only 10% don't believe it's taxable at all

56%

rate their knowledge of crypto tax rules as "good or excellent" — yet knowledge gaps remain significant

High compliance intent. Low functional understanding. A critical gap that crypto-specific tools can help close.

02 →

The ever-present problem:
cost basis and taxability confusion

Despite good intentions, confusion about what triggers a taxable event is widespread. Users average 2.5 platforms or wallets, and 83% use self-custodial wallets — creating a cost basis reconciliation problem that most haven't yet solved.

When do crypto users think a tax event is triggered?
Anytime crypto is sold
49%
Transferred to bank
41%
Profits are over threshold ($600, $2,000, etc.)
36%
Converted crypto
31%
Transferred from other accounts
22%
The cost basis problem
71%

have transferred crypto between wallets or platforms — triggering difficult cost basis tracking challenges

76%

are aware that cost basis adjustments may be required — but only 35% have actually made those adjustments

35%

have adjusted their cost basis in the past — a significant gap given how common cross-platform transfers are

03 →

Tax filing assistance:
AI interest and traditional methods

78% of crypto users still file with general tax software, and 52% use an accountant. But AI is emerging as a meaningful tool — more than a third are actively seeking AI assistance, and 30% say that they would be comfortable with using AI for their entire tax process.

Tasks crypto users are comfortable using AI for
Calculating taxable income, cost basis, capital gains
47%
Tax prep checklist and preparation
44%
Personalized tax strategy recommendations
43%
Determining filing status and deductions
41%
Scouring tax law for deductions and savings
39%
Relying on AI for the entire tax process
30%
Current tax filing methods
General tax software (TurboTax, etc.)
78%
Accountant or CPA
52%
Hard copy / manual filing
9%
Friend or family member
8%
Crypto-specific tax vendors
8%

The story this data tells is one of uncertainty. Users are struggling to navigate the complexities of crypto taxation, which is why it's so important for us to help bridge that knowledge gap. With the resources we've made available this tax season, our goal is to help our users reconcile unknown cost basis data, understand their requirements, and file accurately with confidence.

Lawrence Zlatkin
Lawrence Zlatkin Vice President of Tax, Coinbase

Users need to be aware of the costly repercussions of inaccurate or incomplete digital asset tracking. While crypto brokerages will provide 1099-DA forms this tax year, users are responsible for correctly computing their cost basis, holding period and actual gains or losses. This cost basis issue is uniquely hard to solve, and that's why the right crypto tracking technology and data is key for tax compliance.

Shehan Chandrasekera
Shehan Chandrasekera CPA, Head of Tax Strategy, CoinTracker

Make crypto taxes
less complicated.

CoinTracker and Coinbase are partnering to help crypto users reconcile cost basis, understand their obligations, and file with confidence — no matter how many platforms they use.

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